Submitted By: Aubrey Hale
Presentation By: Aubrey Hale
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Department: Growth Management
FORMAL TITLE:
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Ordinance 2026-27 to amend Chapter 106, Section 105 - Housing Incentive Fund revising criteria pertaining to affordable housing loan programs including length of terms, applicability, administrative process, and interest rates
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OCALA'S RELEVANT STRATEGIC GOALS:
Quality of Place, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Chapter 106 - Planning, Housing, and Development, Article IV - Affordable Housing establishes a housing incentive fund that helps offset permit and impact fees for dwelling units that qualify under the definition of affordable housing. Additionally, the code refers to a loan program with limited or restrictive criteria.
Federal and state housing programs provide resources to support greater affordable housing access within communities but are continuously evolving. The current City code reflects short-term loans with zero percent interest. This provides for a faster return to the housing incentive fund but does not provide flexibility for projects that capitalize on federal and state programs that often require longer terms for financing and affordability provisions.
FINDINGS AND CONCLUSIONS:
Staff finds the following amendment provides greater flexibility and guidance pertaining to loan programs available through the housing incentive fund:
* Clarify how loan programs are administered and recognize the need to amend on a case-by-case basis.
* Establishment of a Short-Term Loan Program
o Mature 10 years or less from the effective date of the loan;
o Maximum interest rate established by City Council ranging from zero percent to half of the U.S. Prime Interest Rate.
* Establishment of a Long-Term Loan Program
o Mature more than 10 years from the loan effective date;
o Loan terms shall not exceed 30 years.
o Available to assist with federal, state, and local affordable housing programs;
o Interest...
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